SEBI finds ₹4.17 crore collected for unregistered investment advisory services

This order addresses the re-computation of the refund amount owed by Shri. Siddhant Suresh Chandan for providing unregistered investment advisory services, following a remand by the Securities Appellate Tribunal (SAT). SEBI examined the Noticee's bank statements and his failure to provide sufficient documentary evidence to support his claims of non-client income.

Shri. Siddhant Suresh Chandan (Noticee); SEBI (Regulator); Hon’ble Securities Appellate Tribunal (SAT); Mr. Jitendra Verma (Accountant); M/s Bhagyabhumi Impex; M/s Capital Steel; M/s Orbit Impex; Angel One Ltd.

• SEBI found that the Noticee collected at least Rs. 4,17,25,034 from clients for unregistered investment advisory activities between Feb 2017 and Aug 2021.
• The SAT upheld SEBI's original findings but set aside the specific refund quantum and directed SEBI to re-compute the fee liable for refund.
• The Noticee claimed a net refund liability of Rs. 29,72,711 after deducting loans, brokerage, and other credits, but failed to provide supporting documents for these deductions.
• SEBI noted the Noticee repeatedly failed to submit required evidence (such as Form 26AS, contract notes, and identity proofs) despite multiple extensions and opportunities for personal hearings.
• The order highlights the Noticee's inability to explain how submitted documents (like bank books and ID cards) support his classification of funds as non-client income.

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